2269.HK
WuXi Biologics (Cayman) Inc
Price:  
25.65 
HKD
Volume:  
27,336,096.00
China | Life Sciences Tools & Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

2269.HK WACC - Weighted Average Cost of Capital

The WACC of WuXi Biologics (Cayman) Inc (2269.HK) is 9.4%.

The Cost of Equity of WuXi Biologics (Cayman) Inc (2269.HK) is 9.70%.
The Cost of Debt of WuXi Biologics (Cayman) Inc (2269.HK) is 4.25%.

Range Selected
Cost of equity 7.80% - 11.60% 9.70%
Tax rate 14.20% - 14.70% 14.45%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.6% - 11.2% 9.4%
WACC

2269.HK WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.83 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 11.60%
Tax rate 14.20% 14.70%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.00% 4.50%
After-tax WACC 7.6% 11.2%
Selected WACC 9.4%

2269.HK's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 2269.HK:

cost_of_equity (9.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.83) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.